Felling and Pelaw leases on residential deteriorating in value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Felling and Pelaw will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not be entitled. There are also strict deadlines and formalities to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancing solicitors that we work with undertake Felling and Pelaw lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
William owned a high value apartment in Felling and Pelaw being marketed with a lease of fraction over 72 years unexpired. William on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were William to invoke his statutory right. William procured expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
Last Summer we were called by Dr W García , who acquired a basement flat in Felling and Pelaw in January 1996. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical residencies in Felling and Pelaw with a long lease were in the region of £205,000. The average ground rent payable was £50 collected yearly. The lease expiry date was on 20 February 2105. Taking into account 79 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.
In 2010 we were e-mailed by Ms C Martínez who, having moved into a basement flat in Felling and Pelaw in January 2009. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical properties in Felling and Pelaw with an extended lease were in the region of £275,000. The average amount of ground rent was £65 collected annually. The lease ended in 2094. Considering the 68 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.